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2021-08-31-accounts

Charity registration number 1100332

Company registration number 04877476 (England and Wales)

BRITISH FRIENDS OF BOYS TOWN JERUSALEM

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees I H Brecker E Ehrhardt J R Moshi Professor S L Stanton D Garbacz I Z Mockton T R Laws D Baum (Appointed 5 April 2022) Charity number 1100332 Company number 04877476 Registered office Schaller House 44a Albert Road London NW4 2SJ Independent examiner Gerald Edelman LLP 73 Cornhill London EC3V 3QQ

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) CONTENTS

Page
Trustees' report 1 - 5
Independent examiner's report 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9 - 14

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees who are also directors of the charity for the purpose of the Companies Act 2006, present their report and financial statements for the year ended 31 August 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Objectives and activities

The main objectives of the C harity are as follows :

The School

Boys Town Jerusalem ('the School') is a residential school encompassing grades 7-12 and a two-year College of Applied Engineering. The curriculum, which is certified by Israel’s Ministry of Education, combines the timeless values of Jewish heritage , secular education and applied technology relevant for contemporary society . British Friends of Boys Town Jerusalem helps support of all who share its vision of turning otherwise disadvantaged Israeli youth into productive citizens of tomorrow.

All the students come from disadvantaged backgrounds and 95% require financial assistance in order to receive a first-class secular education, broad Jewish curriculum, full residential boarding facilities, three freshly-prepared meals each day, dedicated counselling & special needs services, one-to-one tutoring support, & extra-curricular programme spanning educational, sporting, volunteering, social and communal activities.

Activities

The Charity over the course of the year delivered various events which were held in virtual environments, such as the Choral Festival, and then as covid restrictions eased outdoor sports tournaments. The Charity engaged individually to various high value donor groups (trusts, foundation and high net worth individuals), as well as continuing its outbound mail campaigns to its wider supporter base.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Achievements & Performance

Over 7,500 boys have graduated from Boys Town, Jerusalem since it opened in 1949 and, despite their disadvantaged backgrounds, these young men have gone on to make major contributions to their communities and the State of Israel. Academic results for the school significantly exceed the national average, with a 9 2.5 % pass rate in Israel’s Bagrut exams compared to the national average of 70%.

Boys Town Jerusalem has transformed the lives of thousands of young Israelis, giving them and the state of Israel a brighter future. Today, 9 3 0 boys attend this remarkable school. The graduates continue to be best placed to contribute back to Israeli society.

The charitable work of British Friends of Boys Town Jerusalem supports Israel’s most vulnerable children by providing them with the self belief and skills they require to benefit from a constructive future.

The notable milestones achieved during this financial year were

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

The trustees are content with both the growth of the Charity’s awareness and the total income raised through a flexible response to the challenges of the year. The trustees were pleased to introduce new events and embed existing ones against an environment impacted by covid restrictions and the inclement weather which affected both sporting occasions.

In the first annual period without the overheads associated running the UK office, the trustees are satisfied there was no operational downside whilst substantially improving gross to net income conversion. In a technology age enabled by instant communication and electronic document sharing, the support provided by the School has suitably replaced the Charity’s staffed office at Alexander House.

Public benefit

British Friends of Boys Town Jerusalem is to benefit economically deprived youth in Israel to give then a hope and a future by practical support from donations made by individuals and organisations worldwide.

The Trustees have considered the objectives and activities and concluded:

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

Plans for future periods

The trustees launched a donation matching campaign in December 2021 to realise several objectives; a fund raise of £180,000, increasing awareness to new supporters, and delivering a campaign relevant for contemporary demographics through digital social media.

Unfortunately with covid infections reaching record infection levels in the UK over December 2021, the decision was taken to cancel the planned choral festival at the Arts Depot scheduled for February 2022.

Reserves policy

The policy is to maintain the equivalent of at least one quarter of budgeted operating expenditure as unrestricted reserves in order to cover cash outflows. Without monthly overheads, the planning horizon is largely focused largely on the scale as well as timing of income and expenditure from upcoming campaigns.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management

Following the unanticipated resignation of the Charity’s previous Chairman during the last financial year, David Garbacz was appointed Chairman in January 2021.

The trustees delegate day to day running of the Charity to the UK Development Coordinator, Joshua Churney, based at the School. The International Development Director and the UK Development Coordinator are responsible under the guidance of the trustees for delivering various day to day operational activities such as fundraising, marketing, communications, School visits, and delivering global synergies (such as combining marketing communications and leveraging functional expertise). The International Development Director, Yoni Strimber, who is also based at the School leads worldwide fundraising across the UK, USA, Canada, Australia, and Israel.

The trustees are divided into two subcommittees. The Finance Committee is led by the Treasure r and is broadly responsible for accounting, reporting and governance. The Events Committee is broadly responsible for the planning & execution of events. All trustees are tasked with fund raising.

The Chairman is responsible for setting the agenda for trustee meetings, ensuring trustees receive accurate, timely and clear information, keeping track of the contribution of individual trustees, and acting as the lead representative for presenting the Charity externally. Whilst all trustees are responsible for setting the Charity’s direction and strategy, the chairman’s role is to gain consensus for any agreed policy. In the event a unanimous decision is not reached amongst trustees, the Chairman communicates the final agreed decision.

The trustees believe that at all times there should be a minimum of three trustees and therefore a minimum of three board directors. Any of the existing trustees have the opportunity to put forward prospective trustees for consideration. Prospective trustees have an interview and are then invited to attend a meeting as an observer before an offer is made to join the board. In the event the trustees are not unanimous in the recruitment decision, the final decision on whether a trustee should be appointed to the board remains with the Chairman.

British Friends of Boys Town Jerusalem is a company limited by guarantee without share capital. Its governance is determined by the memorandum and articles of association dated August 2003, with amendments unanimously approved by special resolution at the Annual General Meeting on 20 th January 2021.

The trustees have considered the Charity’s commission’s public benefit guidance in the decision making and operation of British Friends of Boys Town Jerusalem. No significant departure from the guidance has been noted. The trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

I H Brecker E Ehrhardt J R Moshi Professor S L Stanton D Garbacz I Z Mockton T R Laws D Baum (Appointed 5 April 2022)

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute a maximum of £10 each in the event of a winding up.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Chairman

D Garbacz

The Trustees' r eport was approved by the Board of Trustees.

J R Moshi

Trustee Dated: 24 May 2022

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF BRITISH FRIENDS OF BOYS TOWN JERUSALEM

I report to the Trustees on my examination of the financial statements of British Friends of Boys Town Jerusalem (the Charity) for the year ended 31 August 2021.

Responsibilities and basis of report

As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Gerald Edelman LLP

73 Cornhill London EC3V 3QQ

Dated: 24 May 2022

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
156,945
23,064
Other trading activities
4
26,806
-
Investments
5
-
-
Material item of income
20,000
-
Total income
203,751
23,064
Expenditure on:
Raising funds
6
34,448
-
Charitable activties
134,920
-
Professional fees
3,783
-
Staff and training costs
-
-
Other office overheads
735
-
Restricted charitable expenditure
7
-
23,064
Total resources expended
173,886
23,064
Net income/(expenditure) for the year/
Net movement in funds
29,865
-
Fund balances at 1 September 2020
46,436
50,000
Fund balances at 31 August 2021
76,301
50,000
Total
Total
2021
2020
£
£
180,009
197,335
26,806
9,471
-
105
20,000
50,000
226,815
256,911
34,448
17,352
134,920
273,084
3,783
10,737
-
33,146
735
6,040
23,064
26,517
196,950
366,876
29,865
(109,965)
96,436
206,401
126,301
96,436

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET

AS AT 31 AUGUST 2021

2021 2020
Notes £ £ £ £ £
Current assets
Debtors 10 14,116 14,116 15,883
Cash at bank and in hand 115,440 115,440 83,153
129,556 129,556 99,036
Creditors: amounts falling due within
one year 11 (3,255) (2,600)
Net current assets 126,301 96,436
Income funds
Unrestricted funds 76,301 46,436
Restricted funds 50,000 50,000
126,301 96,436

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 24 May 2022

J R Moshi

Trustee

Company Registration No. 04877476

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Charity information

British Friends of Boys Town Jerusalem is a private company limited by guarantee incorporated in England and Wales. The registered office is Schaller House, 44a Albert Road, London, NW4 2SJ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.

1.4 Incoming resources

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.5 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity 's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity ’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
176,945
23,064
Donations and gifts
High Value Donors
3,910
-
RH Appeal
41,347
-
Chanukah Appeal
11,675
-
Fundraising Brochure
1,145
-
General Donations
14,672
-
Gift Aid
12,138
-
Corona Campaign
-
-
Foundation Grant Income
-
23,064
Choral Festival
1,101
-
Golf Day
5,626
-
Legacy Giving
3,300
-
Monthly Giving
7,198
-
Diary
670
-
Patron Campaign
15,000
-
Pesach Appeal
19,919
-
Simcha/Condolence
50
-
Bar Mitzvah Gift
3,432
-
In Memory
22,329
-
Purim Appeal
538
-
Kol Nidre Appeal
-
-
Summer Camp
6,259
-
Restricted Income
-
-
Tennis Day
1,798
-
Uprooted Event
1,508
-
Wine Tasting Event
3,330
-
176,945
23,064
Total
2021
£
200,009
3,910
41,347
11,675
1,145
14,672
12,138
-
23,064
1,101
5,626
3,300
7,198
670
15,000
19,919
50
3,432
22,329
538
-
6,259
-
1,798
1,508
3,305
200,009
Total
2020
£
247,335
65,400
49,444
299
7,110
12,287
7,468
1,159
18,517
17,775
-
6,500
3,801
360
10,000
26,221
185
225
598
-
6,880
5,106
8,000
247,335

Included within the 2021 In Memory figure is an amount of £20,000 from a single donor.

Included within the above High Value Donors figure is a restricted amount of £50,000 from a single donor.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

4 Charitable activities

Charitable Charitable activities Charitable activities
activities
2021 2020
£ £
Other trading activities 26,806 9,471
Choral Festival Sponsors & Tickets 4,250 9,471
Golf Day Sponsors, Tickets & Raffle 21,411 -
Tennis Day Ticket Raffle 1,095 -
Other 50 -
26,806 9,471
Investments
TotalUnrestricted
funds
2021 2020
£ £
Interest receivable - 105

5 Investments

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

6 Raising funds

7 Unrestricted
Total
funds
2021
2020
£
£
Fundraising
Chanukah Appeal Costs
50
-
Rosh Hashanah Appeal
6,019
2,929
Pesach Appeal
3,715
3,147
Annual Diary
578
761
Choral Festival
1,016
7,152
Other Campaigns
-
400
Postage & Printing
493
1,979
Events committee
40
68
Fundraising Brochure
-
300
Tennis Day -Costs
698
-
Uprooted Event Cost
200
-
Wine Tasting Costs
863
-
Golf Day - Costs
20,551
-
Advertising & Marketing
225
616
Fundraising and publicity
34,448
17,352
Restricted fund expenditure
Charitable
Expenditure
Charitable
Expenditure
2021
2020
£
£
Charitable expenditure
23,064
26,517

A donation of $7,500 from the Kirsh Foundation was received in both the 2021 and 2020 financial years, which was originated by British Friends of Boys Town Jerusalem but sent directly to the school. In 2021 the Reuben Foundation sponsored three boys for the School's 2-year College of Applied Engineering Program for $23,250, compared to 2 boys in 2020 for $15,500.

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

BRITISH FRIENDS OF BOYS TOWN JERUSALEM (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

9 Employees

The average monthly number of employees during the year was:
No employees received emoluments in excess of £60,000.
There were no employees whose annual remuneration was more than £60,000.
10
Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
11
Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income
12
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31 August 2021 are
represented by:
Current assets/(liabilities)
126,301
-
126,301
-
2021
Number
-
2021
£
11,680
2,436
14,116
2021
£
2,565
690
3,255
Total
2021
£
126,301
126,301
2020
Number
2
2020
£
7,350
8,533
15,883
2020
£
1,400
1,200
2,600
Total
2020
£
96,436
96,436

13 Related party transactions

There were no related party transactions during the period to August 2021.